Carly,
Great point on the importance of recognizing that notes recorded should be done professionally! As for documentation from internal audits, I will be anxious to see other responses for best practices. I have seen some schools protect internal audit reports themselves by including an attorney or internal counsel with appropriate disclaimers on those documents. Any resulting actions tied to specific student records would likely follow standard protocols for updating the file accordingly. For example, if a finding required refunding some amount of money to a student or for Title IV funds, there should be some inclusion of a reference for what prompted such refund after the regular process to indicate why it was done later than the original process. I look forward to seeing other comments as these are great questions!
Traci Lee